Final answer:
The buyer receives an equitable title during an installment sales contract, which allows for full ownership once payments are completed, with options available such as warranties and service contracts for additional protection.
Step-by-step explanation:
During the specified period of an installment sales contract, the buyer receives what is known as an equitable title. This title gives the buyer a right to obtain full ownership, called a legal title, after fulfilling all the required payments of the contract.
The seller retains the legal title to the item until the purchase price is fully paid, offering the buyer certain protections, such as a warranty or the option of purchasing a service contract.
A warranty is a seller's promise to fix or replace the good for a certain time period, while a service contract is an agreement where the buyer pays an additional amount for the seller to fix anything that goes wrong for a set time period.